Pmp Flashcards
Principles
Serves as the foundational guidelines for strategy, decision-making, and problem-solving
Professional standards and methodologies are often based on what?
Principles
Principles provide guidance for what?
The behavior of people involved in the projects
Adaptability
The ability to respond to changing conditions
Resiliency
The ability to absorb impacts and to recover quickly from a setback or failure
What are the three types of project development approaches?
Predictive or traditional or waterfall, agile or adaptive, hybrid
Iterative development approach
This is an adaptive development approach where you have a single deliverable, but you continue to iterate and incorporate changes until that deliverable is finalized
Incremental development approach
This is an agile or adaptive development approach where There are multiple deliverables in the project that can be delivered to the customer in pieces, such as pieces of a software application delivered in increments
What are the 5 process groups?
Initiate, planning, executing, monitoring and controlling, closing
How many processes and process groups are there?
5 groups and 49 processes
What are ITTOs
Inputs, tools, techniques, outputs
What is initiation?
The first process group that involves authorization of the project
What is executing?
One of the process groups that involves doing the work.
What is monitoring and controlling?
One of the process groups that involves keeping the project on track.
When can the process groups and 49 processes be applied?
At any phase in the project life cycle. Design, develop, test, deploy
Need to confirm phases of project life cycle
What do ITTOs define
Inputs, tools and techniques, and outputs are all things defining a process. There are 49 total processes, and many of these processes have the same ITTOs.
Enterprise Environmental Factors (EEF)
Think company culture. Things that impact the project but are not part of the project. These can be internal (ie corporate structure when getting approvals) or external (ie industry regulations)
Organization Process Assets (OPA)
A process input that is synonymous with templates. These are company assets such as knowledge bases, information, policies, procedures, documents to help PMs achieve objectives.
Project documents
Additional documents created throughout the 49 processes that are not part of the project management plan.
What is the number of Project management plans and project documents?
There are 18 plans and 33 documents
Project management plan
A “how to” document. Defines how the project is executed, monitored and controlled, and closed. It has 18 components, 14 plans, and 4 baselines.
After data gathering, what are the 4 methods to analyze data?
Alternative analysis (looking at different options or ways to accomplish something), root cause analysis (RCA), variance analysis (find difference between multiple things), trend analysis. Variance is like a snapshot of how far you are off both positive or negative, such as 10% behind schedule for 5% over budget. A trend is looking at those repeated results.
Phases of the data gathering process
4 phases: gathering, analyzing, presenting, decision-making
Regulation
An official guideline that must be followed by the project, usually imposed by local or national law.
Standard
A guideline that should be followed, but it’s not mandatory
Baseline
Used to measure the performance of the project, such as cost schedule and scope
System
A set of processes and procedures that a company will implement to manage something such as accounting procedures to invoice customers
Directive PMO
This is an office that takes control of the project by managing the projects and assigning the project manager
Supportive PMO
The PMO has a low degree of control on the project. Also of note, the term guiding PMO is not real.
Controlling PMO
Control the way the project is done by providing templates and frameworks
What are the three types of PMOs?
Directive is where the office has complete control, controlling is where the PMO provides methodologies or frameworks, supportive is where project managers have most flexibility to choose their own methodologies and be in control of the project
What are the four types of organizational structures as they relate to project management?
In order from little control to the most control. Functional, weak matrix, strong matrix, project oriented.
Functional organizational structure type
The project manager is part time and has no control over resources
Weak matrix organizational structure type
The project manager is part-time and has some control over resources
Strong matrix organizational structure type
The project manager is full-time and has moderate to high control over resources
Project oriented organizational structure type
The project manager is full time and has high to complete control over resources.
Organizational structures
Four structures that indicate how easy or difficult it is to get resources. These are: functional, matrix (weak, or strong), project oriented, hybrid.
Project governance
Refers to the framework, functions and processes that guide a company to create a project.
Program
A group of related projects that are managed in coordination to obtain the benefits of not managing them individually
Portfolio
A collection of projects, programs, and other portfolios. A portfolio achieves the organizations strategic objectives.
Project
A single temporary endeavor to create a unique product service or other result. It has a start and an end date.
What attempts to achieve the organizations strategic objectives? Portfolio, program, or project?
Portfolio. While projects and programs may help complete a portfolio they may not always achieve strategic objectives in themselves.
Executing
The process group where the project manager acquires both the physical and human resources to complete the project work the main output of execution is the project deliverables i.e. the work.
Initiating
The process group used to authorize the project
Planning
Next process group after Initiating. Contains the most sub-processes and is critical to project success.
Planning
The process group used to determine the course of action needed to build the deliverables
Closing
The process group used to review the project and transition the deliverables to the customer or sponsor
project lifecycles
A representation of the phases a project goes through from start to finish. The project lifecycle will influence the development approach (predictive/traditional or adaptive/agile, or hybrid.)
Process groups
Initiating, planning, executing, monitoring and controlling, closing
Processes in the Initiating group
Project charter and identify stakeholders
Project charter
The process of formalizing a document to authorize a project or phase. It outlines project objectives and defines the authority of the project manager. It provides the project manager with the authority to put project resources together.
What formally initiates a project?
An approved project charter.
What are the inputs of a project charter?
Business documents, such as a business case or a project benefits management plan. Agreements, such as a service level agreement or letter of intent.
What are business documents?
These are inputs for the project charter. They contain specific information as to why a project should be initiated. There are two main business documents, a business case and a project benefits management plan. If somebody wants to outline why a project should be done, they would put it in business documents.
Project benefits management plan
A business document as part of the project charter phase. describes the main benefits the project will produce once it’s completed. Think cost benefit analysis.
What’s in the project charter output?
A formal authorization for the project and assigns authority level for the project manager. It contains high-level requirements and risks, as well as preliminary budget and schedule. It provides the project purpose or justification and is signed by senior management.
What is an assumption log?
This is part of the project charter, which includes a list of things that you perceived to be true and also possible constraints
Identify stakeholders
This is one of the 49 process as part of the initializing process group. This is something you do regularly throughout the project. You want to document and understand their interests and involvement. It helps your team understand how to engage stakeholders based on their preferences and relevance.
Stakeholder analysis
This is part of the tools and techniques (ITTO) for the identifying stakeholder process (49). Key points are to understand if the project is a positive or negative thing, if they are an active or passive participant.
Stakeholder mapping
Using different tools to categorize stakeholders. These include power interest grid (a.k.a. power influence grid or impact influence grid), stakeholder cube, salience model, directions of influence, prioritization
Stakeholder cube
This is a method to identify and categorize stakeholders. It is a three-dimensional methodology to support the mapping of a stakeholder’s interest, power, and influence.
Salience model
A tool to identify and categorize stakeholders. This tool looks at three components: power (level of authority), urgency (immediate attention), legitimacy (how appropriate is their involvement).
Directions of influence
A tool to identify and categorize stakeholders. There are four directions: upward (senior management), downward (project team members below you), outward (vendors government, public and users), sideward (peers such as other project managers).
Stakeholder register
This is the output of identifying stakeholders. An Excel spreadsheet that contains contact info, role on the project, communication requirements, expectations of the project, how they are affected by the project, power influence level.
Integration process
These are the top level processes in each process group that require the other child processes to be completed in order to finish. For example, develop project management plan is the integration process (top level) of the planning process group and all child planning processes must be completein order to finish the project management plan.
What are the high-level outputs of a project management plan?
Project management plan outlines the basis of all project work and how the work will be performed. It can be summary or detailed, but detailed is preferred. It contains base lines and plans.
Name the integration processes for each process group
Initiating (develop project charter), planning (project management plan), executing (direct and manage project work), monitoring and controlling (monitor and control project), closing (close project or phase)
Baselines
Defines what the work is. Cost baseline is your budget, schedule baseline is how long the project could take, scope baseline is what work will be done.
What are plans as they relate to the project management plan?
Plans, specify how baselines will get done. Project management plans should contain baselines which include cost (your budget), schedule (your time), scope (the work), and performance measurement. Plans will outline how these baselines will be met.
How many baselines are included in the output of a project management plan?
4 baselines: scope, schedule, cost, performance measurement
Who approves the project management plan?
The project manager, sponsor, functional manager, program manager, or in rare instances, senior management
What is the purpose of a project management plan?
Is a formal written piece of communication that provides guidance on project execution. It can only be changed when a change request is generated and approved by the change control board OR sponsor.
What is the difference between a management plan and a baseline plan?
A management plan describes HOW you will accomplish the work. A baseline plan defines WHAT the work is.
How many management plans are there?
- Management plans are the output of the develop project management plan process. They are: scope management plan, requirement, schedule, cost, quality, resource, communication, risk management, procurement, stakeholder, change, configuration.
Plan scope management
A component (process) in the planning process group. It documents how the project and product scope will be defined, validated, and controlled. It offers guidance and direction on how scope will be managed throughout the project.
Gold plating
Doing extra work, not in the scope
Can you add scope to a project?
Yes, if you submit a change request and get it approved. You must update the scope document. Once approved, this is authorized work and is not counted as scope creep.
What is the plan scope management outputs?
Plan scope management is the process. When the process starts with the word plan, you know it is a process. The output is the scope management plan and the requirement management plan.
Scope management plan
This is the output of the plan, scope management process. It documents how the scope will be defined, developed, monitored, maintained, controlled and verified. Also defines how change requests to the scope statement will be processed.
Requirement management plan
This is the output of the plan scope management process. It defines how the requirements will be analyzed, documented and managed. It also documents traceability to determine who provided what requirements.
What are some tools to collect requirements?
Idea mapping or mind mapping, affinity diagram, observations (i.e. job shadowing), conversations, context, diagrams, prototypes.
Idea mapping or mind mapping
A method used to visually organize information. Ideas gathered through brainstorming are mapped together to discover new considerations and concept variations
Affinity diagram
A method to gather requirements. Includes large ideas that are grouped and sorted together for further review and analysis.
Context diagrams
Used to collect requirements. Visually show how a business process, other systems and people interact.
Prototypes
A tool to collect requirements. A working model of a product that stakeholders can interact with and provide feedback how they might want to change to better meet their requirements.
Requirement documentation
This is the output of the collect requirements process. This documentation helps define how requirements are to be performed and why they are important to the project. Components include acceptance criteria, quality, project objectives, organizational impacts, legal or ethical compliance, assumptions, and constraints.
Define scope
This is a process in the planning process group. It comes after the process of collecting requirements. This process will determine what work will be done since not all of the requirements will be included.
What is the output of the define scope process?
Project scope statement, and project documents updates.
Project scope statement
This is the output of the define scope process. It describes in detail the project deliverables, and the work that is required to produce those deliverables. The greater the detail level of the scope allows the team to better understand how to complete a successful project.
Product description, goals of the project, identified risks, acceptance criteria, project constraints and or exclusions
Product description, goals of the project, identified risks, acceptance criteria, project constraints and or exclusions
WBS
Work breakdown structure. This diagram breaks down the project deliverables from the “define scope“ process into smaller more manageable components. This is also known as decomposition, breaking down into “work packages”
Importance of WBS
Work breakdown structure. Better define scope. Determines team responsibilities and ranks. The work. Each piece of work must have an ID for reference.
WBS dictionary
Expands upon each work packet or block of work to include more detail, such as the description of the work, who’s it’s assigned to, the location of the work, the estimated cost, the due date, the duration, etc.
Functional structure
An organizational structure, that groups staff members to their area of expertise (sales, marketing, development). This structure requires staff members to report directly to a functional manager.
Matrix organizations
There are three matrix structures: weak, balanced, and strong. These structures are reflective of the project managers authority in relation to the functional managers authority.
Project oriented structure
Structure where the project manager has the greatest amount of authority. The project team is assigned to the project on a full-time basis, and they move on to other projects once complete.
Hybrid organizational structure
Describes organizations who implement a combination of functional, matrix, and project oriented structures throughout the business. This means that in some areas of the business, a project manager and project team is part time and has little control over resource allocation. In other areas, the project manager has Total control of resources and the project.
Project management
Is the application of knowledge, skills, tools, and techniques to satisfy project requirements
Program management
A group of related projects managed in a coordinated way to obtain benefits and control, not available from managing them individually
Operations management
Deals with the ongoing production of goods and or services. Considers the acquisition, development, and utilization of resources that firms need to deliver the goods and services
Phase
Is a collection of logically related project activities that culminate in the completion of one or more deliverables
Deliverable
Any unique and verifiable product, service or result. May be tangible or intangible. Must be accepted by the customer or sponsor for the phase.
Three pillars of project governance
Structure, people, information
Stakeholders
Individuals, group, or organization that may affect, be affected, or perceived to be affected by the project
Key stakeholders
Project manager, customer, project team, project sponsor, functional manager
Roles of a project manager
Initiator, negotiator, listener, Coach, working member, facilitator
Facilitator
One of the rules of a project manager. Is someone who manages group processes, discussions, or meetings to ensure effective communication, collaboration, and decision-making.
Milestone
A significant event or achievement in a project that marks a key point or completion of a major deliverable
Task duration
Refers to the amount of time it takes to complete a specific task or activity within project
Project management office (PMO)
Organizational structure that standardizes the process and facilitates the sharing of resources, methodologies, tools, and techniques.
Types of PMO
Directive (parent controls the project. PM will be assigned and report to the PMO.), CONTROLLING. (determines the framework or methodology and use of specific forms.), supportive (supports the project manager, such as providing templates, training, or lessons learn from other projects)
Project bosses
Sponsor - can be internal or external, is the project champion, funds the project, may be used to resolve conflicts.
Program manager - senior to project manager, maybe responsible for several projects executing at the same time, may be used to resolve conflicts in the project
Project constraints
Scope, schedule, cost, risk, quality, resources
Areas of a project
Scope – the work to be done, schedule – time to get the work done, cost – budget of the work, quality – customer satisfaction of work, resources – managing the people and material resources, communication communications – disseminating correct information at the right time, risk, procurement – acquiring resources from outside the project team, stakeholder engagement – constant feedback
Two types of project management approaches
Predictive approach and adaptive approach
Predictive approach
Follows a linear and sequential process. Involves detailed planning upfront with a focus on predicting and defining the project scope, objectives, timeline, and deliverables. Extensive upfront planning, emphasis on control and documentation, limited flexibility with limited changes and a well defined change control process.
Adaptive approach
A project management approach that focuses on flexibility, collaboration, and iterative development. Embraces change throughout the project and emphasize his continuous feedback and improvement. Iterative and incremental development, customer, collaboration, adaptability, self organizing teams.
Product management
Encompasses strategic planning, development, and lifecycle management of a product or service. Involves understanding market needs, defining product, strategy, gathering requirements, and overseeing product development, launch, and ongoing optimization. Responsible for success of the product and aligning with business objectives and customer demands.
Project management
Project management focuses on the successful execution and delivery of specific projects with a defined scope, timeline, and budget. Responsible for planning, coordinating and managing the activities required to achieve project goals. Ensure the project is completed on time, within budget, and according to the quality standards.
Product vs project management
Product managers work closely with project managers to translate the product strategy and roadmap into actionable project plans. Project managers, oversee the execution of those plans, ensuring that the product is developed, tested, and delivered according to the defined specifications. While project management is a part of product development, it is just one component.
Risks
Potential events or situations that may occur in the future, and have an impact on the project success
What two things are often based on principles?
Professional standards, and methodologies
Principles provide guidance for what?
The behavior of people involved in projects
Are principles and morals the same?
No. Principals can, but do not necessarily, reflect morals. I think of these like principles is how you’re supposed to behave within an org and are based on org rules, where morals can differ between people and are more opinion based.
4 ethical values
Ethics is related to morals. The PMI is based on 4 ethical values: responsibility, respect, fairness, honesty.
What are the 12 project management principles?
Be a diligent, respectful and caring steward. Create a collaborative project team environment. Effectively engage stakeholders. Focus on value. Recognize evaluate and respond to system. Interactions. Demonstrate leadership behaviors. Taylor based on context. Build quality into process and deliverables. Navigate complexity. Optimize risk responses.Embrace adaptability and resiliency. Enable to achieve envisioned future state.
Stewardship
The act of taking care of or managing something, for example, property, and organization, money or valuable objects.
Project teams will be affected by what?
Team agreements (represent a set of behavioral parameters), organizational structures, processes
Value
The ultimate indicator of project success. Can be realized at any point in the project life cycle. Can be defined in quantitative or qualitative terms. Project teams evaluate progress and adapt to maximize value.
A business case contains at least three supporting and inner elements
Business need, project justification, business strategy
Issues
Referred to problems or challenges that arise during the course of a project there are typically negative events or circumstances that can hinder progress or impact project objectives
Assumptions
Statements or beliefs that are considered to be true or valid for the purpose of planning and decision-making
Constraints
Limitations or restrictions that affect project planning and execution
Authority
Not the same as leadership. Authority is the right to exercise power and control individuals.
Leadership
The ability to motivate people towards a common goal, inspire them to line their individual interest in favor of collective effort, and achieve success of a project team rather than as individuals
Leadership behaviors
Focusing a project team around agreed-upon goals, articulating and motivating around project vision, generating consensus, on best way forward, overcoming obstacles, negotiating, and resolving conflict, adapting, communication style to stakeholders, coaching, self-awareness of one’s own bias and behaviors, managing and adapting to change
Quality
About meeting the acceptance criteria for deliverables. About satisfying expectations of stakeholders and fulfilling project and product requirements.
Dimensions of quality
Including, but not limited to: performance, reliability, resilience, satisfaction
How do teams measure quality?
Metrics and acceptance criteria. What is delivered should meet the objectives of the customer and other relevant stakeholders.
What are the common sources of complexity?
Human behavior, system, behavior, uncertainty, and ambiguity, technological innovation
Risk
An uncertain event or condition that, if it occurs, can have a positive or negative effect on one or more objectives. Risks are evaluated continuously throughout the project.
A positive risk is known as
Opportunities
A negative risk is known as
Threat
Risk responses should be…
Risk responses should be: appropriate for the significance of the risk, cost-effective, realistic, agreed upon by stakeholders, owned by the responsible person
Adaptability
The ability to respond to changing conditions. The focus should be on outcomes over outputs.
Resiliency
The ability to absorb impacts and to recover quickly from a setback or failure
What capabilities support adaptability and resilience?
Short feedback loops to adapt quickly, continuous learning and improvement, regular inspection, open transparent planning that engage stakeholders, small scale prototypes and experiments, open organizational conversations, diverse project teams, understanding from past learning
Project performance domains
Eight domains: stakeholders, team, development approach, planning, executing the work, delivery, measurement, uncertainty
Stakeholder performance domain
Addresses activities and functions associated with stakeholders. Productive working relationship with stakeholders throughout the project. Stakeholder agreement with project objectives. Negative stakeholders have minimal negative impact on project outcomes.
Steps for effective stakeholder engagement
Identify, understand, analyze, prioritize, engage, monitor. Continuously repeat this process.
How do you determine if stakeholders agree with project objectives?
A limited number of changes or modifications to the requirements and limited scope creep.
What are common aspects of team development?
Vision and objectives (all team members are aware), roles and responsibilities, project team operations (communication process for consensus), guidance, growth (what’s working well and what can be improved)
Delivery cadence
Refers to the timing and frequency of project deliverables. Predictive development approach has a cadence that includes a single deliverable, whereas an agile development approach has a cadence that can be delivered in increments.
What factors influence the selection of a development approach
Product, service, or result. These include degree of innovation, requirements certainty, ease of change, delivery options, risk, safety requirements, regulations. The project (stakeholders, schedule, funding) and organization, (org structure, culture, or capability, project team size and location.) also influence.
Project lifecycle
The steps executed to build a deliverable. For example, visibility, design, build, test, deploy, close. Every project has different life cycles and can be defined by the team. The development approach will be influenced by the lifecycle.
Variables that determine the volume, timing, and frequency of planning
Each project is unique and volume timing and frequency of planning will vary. So what are the variables that determine how planning is done? development approach, project deliverables, organizational requirements, market conditions, legal or regulatory restrictions. These variables can speed up or slow down the plan.
What are things to consider when planning?
Delivery (what is the scope), estimating (scope, schedule, budget of resources, both people and physical), schedules – models used to determine when work has to be done, budget – how much will the work cost?
Two types of resources?
Team/people, and physical (material, equipment)
Project work performance domain
Deals with activities and functions associated with establishing project processes, managing physical resources, and fostering a learning environment. Establishing processes and performing the work to produce deliverables.
Project delivery performance domain
Deals with activities and functions associated with delivering the scope and quality that the project was undertaken to achieve. It’s about meeting requirements, scope, and quality expectations to produce deliverables.
Measurement performance domain
Deals with activities and functions associated with assessing project performance and taking appropriate actions to maintain acceptable performance. Is the work done in the delivery performance domain meeting the metrics identified in the planning performance domain?
Ways to measure performance
Key performance indicators (KPI) – two types: leading KPI predict changes or trends in the project, lagging KPI – measure project, deliverables, or events by providing information after the fact.
Effective metrics
SMART – specific, meaningful, achievable, relevant, timely
What are things we measure?
Deliverable metrics (number of errors or defects, measures of performance), delivery (work in progress, lead time, cycle time, process efficiency), baseline performance (start/finish dates, actual versus planned cost), resources (planned utilization vs actual), business value (cost benefit ratio), stakeholders (mood chart), forecasts
Threshold
A range of outcomes that are acceptable when you are measuring and reporting. Project will never go perfectly as planned, so with things like budget, velocity, and other project specific measures you should have a threshold or range of acceptability.
Options for responding to uncertainty
Gather information, prepare for multiple outcomes, build in resilience
Process
Inputs, outputs, and tools and techniques combined to execute a specific purpose on the project
Enterprise environmental factors (EEF)
Very common input to a process. Things that impact the project but are not part of the project itself, meaning it’s not something to-do as part of projects. Think company culture
Two main types of EEF
Enterprise environmental factors. Internal or external. Internal – structure/governnance, culture, stakeholder risk appetite, org communication channels, existing IT software, geographic distribution, infrastructure, resource availability, employee capability. External – political climate, government/industry standards, legal restrictions.
Tools used for data gathering
Brainstorming, interviews, focus groups, checklist, questionnaires, and surveys
Methods of data analysis
Alternative analysis – looking at different options or ways to accomplish something, root cause analysis – identify main reason for particular event, variance analysis – find exact differences between different things, trend analysis – looking at data over a period of time
Ways to represent data
Use of visuals like charts, matrixes, and diagrams. Example examples include flow charts, fishbone diagrams, histograms.
Change request
A proposal to change a document, deliverable, or baseline. Can include a request to add or remove work from the scope, finish the project faster or complete the project more cheaply.
Who initiates a change request
It can be the sponsor or end user/senior stakeholder, but I can also be the project manager. Project managers can implement the following types of change requests: corrective action – the project is of course, and needs to be corrected, preventative action – a risk was identified and prevent preventative action as needed to keep project on course, defect repair
Work performance data
The raw data. The status of the work that is done, but does not have any analysis applied to it and is not useful by itself. It has not been compared with the plan so it’s not useful by itself.
Work performance information
Information of the work that was performed compared to the plan. It gives you actual status about the deliverables. Is usually the output of most monitoring and controlling processes.
Work performance report
Overall status report of the project. One comprehensive document containing all work performance information.
This is the report that’s created based on comparing the results of your current project status against the plan. For example, is the work your team has done tracking with the plan, or is the team ahead or behind?
Plan schedule management
The process of creating the output for schedule management plan. Every org will have a document for how they manage the schedule, such as how they plan, develop the schedule, manage the schedule, and control the schedule for the project. Guides how the schedule will be managed throughout the project.
Process to generate Activities
At a high-level, you start with a scope statement (the deliverables), then that scope is broken down (work breakdown structure ) into work packages, and within each work package is decomposed into activities.
Things to include in a project plan
Levels of accuracy – size of project can impact accuracy, rules of performance measurement – how to measure performance of schedule, reporting formats, release and iteration length, scheduling model
Decomposing
Breaking down deliverables into work packages and then work packages into activities.
Activity list
This is the list of activities after the work packages from the WBS have been decomposed into activities
Activities
Process of identifying and documenting the specific actions to be performed to produce the project deliverables. They decompose work packages into schedule activities that provide a basis for estimating, scheduling, executing monitoring and controlling the project work.
Example of breakdown from deliverables to work packages to activities
Deliverable is to paint a room. That is broken down into work packages, such as buy paint, remove furniture, prep floors, etc. The activities are more granular, for example, research where to buy the paint, make sure the paint is in stock, go to the location and buy the paint.
Sequence activities
Determining the order of activities after work packages have been decomposed
Rolling wave planning
A method of continuous planning. Long-term plans cannot be broken down into work packets, but shorter term plans can, so you create activities for shorter term plans and then continuously plan again when longer term deadlines get closer.
Output of defining activities
Activity list – your list of activities decomposed from work packages, activity attributes – details about each activity and what the work is (I.e. location of activity), milestone list
Precedence diagramming method (PDM)
Representation of all work that is needed to be performed on the project. Represents the flow of the project. What work packages tie into other work packages in order as well as durations. Shows work packages relationships to each other. Think flow diagram.
Used to construct the project schedule network diagram, showing the dependencies between activities
Used to construct a schedule in which activities are represented graphically using notes and are linked based on their relationship
Sequence activities relationships
Finish to start (most commonly used), finish to finish, start to start, start to finish
Finish to start
A relationship type when sequencing activities. Most commonly used. A task (the successor) cannot begin until another task (the predecessor) is completely finished. This logical dependency helps ensure tasks are completed in the correct order and avoids delays.
Finish to finish
A relationship type when sequencing activities. A successor activity cannot finish until it’s predecessor activity has finished. This ensures that one task is completed before another can be considered finished.
Start to start
A relationship type when sequencing activities. In activity cannot begin until another specific activity has begun, establishing a dependency between the start of one activity and the start of another.
Start to finish
A relationship type when sequencing activities. The completion of the successor work package depends upon the start of its predecessor work package.
Mandatory dependency
Also known as hard logic. One work package must be completed prior to subsequent work package beginning. I.e. house foundation before framing, purchase paint before painting walls, purchasing hardware before installing software.
Discretionary dependencies
Also known as soft logic. Work packages tied together, but the work is not limited and can be done in parallel. Work does not need to be done necessarily in a particular order and is at the discretion of the person doing the work I.e. painting walls and laying carpet at the same time, cooking dinner and dessert in the same oven, designing packaging while final testing of product.
Types of dependencies
Mandatory (hard logic), discretionary (soft logic), external, internal
External dependencies
Work package relationship between project and non-project activities, where non-project activities are usually outside the control of the project team. I.e. receiving gas from external source in order to fill up bulldozer needed for construction project, store having paint in stock prior to buying it, waiting on government approval for a permit
Internal dependencies
Project activities are within control of the team. How to test computer software after installed, who does what tasks on a project
Leads and lags
Terms used during activity sequencing. A lag is a delay and a lead is an overlap.
Lead
Used when sequencing activities. Think overlap of predecessor and successor . Describes when an activity can be partially completed and another activity can be started, which can save time on a project. I.e. 50% of furniture removed from room then paint wall activity can be started. Don’t have to wait for all furniture to be removed
Lag
Used when sequencing activities and references a delay between predecessor and successor. I.e. paint the room, wait a day, then put furniture back.
Estimate activity durations
Planning Process of Estimating the number of work periods needed to complete activities with estimated resources. The amount of time each activity will take to complete. Length of the project will dictate how you estimate time, longer projects estimate in weeks shorter projects estimate in days or hours.
Analogous estimation
Also known as top down estimating. Relies on historical information to predict estimates (such as estimating time, budget, difficulty) for current project. Often used when limited amount of information available. Costs less in time and money, but least accurate when estimating.
Bottom up estimation
A type of estimating where the work must be very detailed and takes a long time to complete, highly accurate. Breakdown the work to lowest activities, then aggregate the work back up to find overall duration.
Parametric estimating
An estimation technique that uses statistical relationships, and calculations. Involves an equation and calculation. I.e. painting one square foot takes 10 minutes, there are 200 ft.², calculate time. Can also be used to calculate scope or cost, etc..
Three point estimate
A type of estimating technique that calculates an expected duration, using a weighted average of three estimates: optimistic, pessimistic, most likely (O + P + 4M)/6. For example, optimistic is eight days, pessimistic is 14 days, and most likely is 10 days, this equals 10.33.
Duration estimates
This is the output of the estimate activity durations process. It is the likely number of work periods required to complete an activity or work package. It does not have any leads or lags and it’s just a number i.e. painting X room will take at least 36 man hours to a maximum of 42 man hours.
Basis of estimates
This is part of the duration estimates output. A justification for how you estimated activity durations and their ranges. Will specify confidence levels in the estimate. Can include assumptions and constraints.
What are the tools to estimate activity durations?
Estimate activity durations is a process of planning. The methods used are: analogous estimating (TopDown), parametric, three-point estimate (PERT), bottom up.
PERT
Program (or project) evaluation and review technique. A.k.a. three-point estimate. A scheduling tool that uses a weighted average formula to predict the length of activities in the project.
Standard deviation (as it relates to three point estimate.)
Once you calculate PERT, then you can calculate the range plus or minus based on the estimate. So if you calculate PERT has five days, your standard deviation might be plus or -2 days. Formula is (pessimistic estimate - optimistic)/6
Triangular distribution
A non-weighted average of the PERT estimation formula. Calculated by adding together optimistic, realistic, pessimistic estimates and dividing by three. Remember PERT includes multiplying realistic by four (thus adding weight). Formula is (optimistic + realistic + pessimistic)/3.
Planning process structure
If you look at all the planning processes, they are ordered in a logical sequence. I.e. Collect requirements, then define scope, then breakdown work, then sequence and estimate activity, durations, then develop schedule, then develop costs, etc..
Develop schedule
A process in the planning process group. Involves analyzing activity sequences, durations, resource requirements, schedule constraints, then create a schedule for project execution and monitoring/controlling. Schedule model must include planned dates for completing project activities. Use a scheduling tool, allowing inputs of activities, durations, and resources.
Schedule network analysis
A tool used for developing a schedule. Employs several different techniques (critical path, critical chain, what if analysis, and resource optimization techniques) to determine the length of the schedule. Used to calculate early start and early finish dates, late start and late finish dates.
Resource optimization techniques
Keywords are flattening and leveling. Techniques are used to develop the schedule. A method to flatten the schedule when resources are over allocated or allocated unevenly. Resource leveling can be applied in different methods to accomplish different goals. Common method to ensure workers are not overextended on activities.
What are the tools for develop schedule process?
Schedule network analysis, resource optimization techniques, critical path method, critical chain method, data analysis (what if scenarios, simulations), leads and lags, schedule compression (crashing, fast tracking), PMIS, agile release planning.
Crashing
A tool used during the develop schedule process. Part of schedule compression technique. Involves adding a resource to a project activity (people, or equipment, i.e. add another painter, purchase a paint gun vs brush). ALWAYS ADDS COST, may add additional risk.
Fast tracking
A tool used for developing schedule process. Part of schedule compression technique. Is when activities are performed in parallel (ie two developers, working on the same area to complete work faster, MAY cause risk – tripping on each other, distracting each other, etc., )May not always add cost and may increase risk due to project rework.
Project schedule
The output of the develop schedule process. Includes project start/end dates. Each activity start/end date. Can be detailed or high-level. Most often showed graphically (project network diagrams, bar charts, milestone chart.).
Schedule baseline
An output of the develop schedule process. It is the start and end date of the project.
Schedule data
An output of the develop schedule process. Includes schedule templates used to create the output, calculate durations, assumptions, constraints, resource requirements, etc..
Project calendars
An output of the developed schedule process. Identifies project shifts and workdays not every project is Monday through Friday, 9 to 5.
Develop schedule process outputs
The outputs of the develop schedule process include: project schedule, schedule baseline, schedule data, project calendars
Critical path
When creating a diagram of all your activities, the CP is the longest/largest number. It represents longest time until project completion. Activities on the CP do not include any slack or float. Can have multiple CPs.
Slack or float
The amount of time you can delay an activity or activities without delaying the project. Activities along the critical path cannot have any slack or float because the CP is the ultimate project end date, which should not move. Float can be applied to both start and finish.
How do you calculate float or slack?
Late start minus early start OR late finish minus early finish.
Forward pass
The act of defining early start and early finish dates for each activity along the paths of a network diagram. Equation is (ES + duration)-1 = EF. So, if early start is one (top left corner of box) and duration is three, then early finish is three.
Backward pass
Equation is (LF - duration) + 1 = LS. Allows you to calculate late finish and late start working backwards from the finish to the start of your workflow diagram.
Critical path and forward pass and backwards pass
When calculating forward pass and backwards pass, the critical path of your workflow diagram will contain the same values. In other words, your late start an early start will be the same and your late finish and early finish will be the same. This is because the CP has no float
Backwards pass and forward pass – review and rewatch lessons 102 to 109
Rewatch
Total float
The amount of time you can delay an activity without delaying the whole project
Free float
The amount of time you can delay an activity without delaying the next activity
Free float equation
Free float equals
ES of next activity - EF of current activity - 1
Best way to find critical path on the exam
Rather than attempting to go through all the letter iterations, you can find the forward pass and the backwards pass and then look at the activity boxes to determine where there is zero slack (meaning late start and late finish are the same as early start and early finish)
Plan cost management
Defining how the project costs will be estimated, budgeted, managed, monitored and controlled. Provides guidance and direction on how project costs will be managed throughout the project.
Value engineering
A.k.a. value analysis, is finding a less costly way of doing work. It will look at how to achieve a goal/scope the least costly way.
Cost types
Fixed, variable, direct, indirect, sunk
Fixed costs
Costs that stay the same throughout the life of the project (i.e. bulldozer)
Variable costs
Costs that vary on a project (i.e. hourly labor, fuel for bulldozer)
Direct and indirect costs
Direct – expenses billed directly to the project (i.e. materials used to construct a building). Indirect – costs that are shared and allocated amongst several or all projects (i.e. manager salary).
Sunk costs
Cost that have been invested into or expended upon the project. Sunk costs are like spilt milk.
Cost management plan
The output of the plan cost management process. Defines how cost will be planned, structured and controlled. Includes units of measure, level of accuracy, reporting formats, control thresholds. Keep in mind that these outputs are like management documents, but you haven’t made the budget at this point. You develop the plan output, then use it during the next step of actually creating the budget.
Estimate costs process
Process of estimating cost of resources needed to complete project work. Usually expressed in some form of currency. Accuracy will increase as project progresses through the project life cycle. Examples include labor, materials, equipment, services, facilities, special categories (i.e.inflation, financing, renting)
Estimate costs – types (not tools for estimating)
Definitive estimates – most precise, -5% to +10%.
Budget estimates – moderately precise, -10% to +25%
Rough order of magnitude estimates – least precise, -25% to 75%
Tools to estimate cost
Many of the same tools used to estimate time can estimate cost. Analogous estimating – top down, not very detailed. Parametric estimating – uses historical statistical info (i.e. generally one hour to paint 50 feet at X dollars). Bottom up estimating – highly accurate, the estimator breaks down activities and assigns value.
PERT - 3 point estimating – costs
This tool for estimation was covered in scheduling, but can also be used for cost. In the equation, just substitute time variable with cost
Broad steps for determining a budget
Start with the process of defining a cost management plan (plan cost management process), then estimate the cost of all the resources (estimate cost process), then aggregate the cost and create a budget (determine budget process)
Determine budget
Once costs are identified, then aggregate and create project budget. Process of aggregating estimated costs of individual activities or work packages to establish an authorized cost baseline. Project performance can be monitored and controlled by comparing to baseline
Contingency reserves
Part of the determined budget process. Extra financial padding defined by the project manager that can address impacts of known or unknown risks. I.e. bad weather reserves on a construction project.
Management reserve
Part of the determine budget process. Extra financial padding added by management to cover unknown or known risks to the project. Requires change request to access.
Cost baseline
Output of the determined budget process. Includes cost of all activities/work packages plus contingency reserves equals cost baseline. Typically displayed in a S curve graph. Cost baseline + management reserves equal project budget.
Known/unknown risk
This is risk that you know can happen, but you don’t know if it will happen. A construction project you know that bad weather will strike, but you don’t know when it’s going to strike.
Cost benefit analysis
Is the money spent on a project providing the appropriate quality?
Cost of quality
Referring to all costs incurred over the life of the product devoted to ensuring quality.
Conformance and nonconformance
Conformance is costs spent preventing poor quality, non-conformance is the money spent fixing defects and failures because of poor quality
Quality management plan
The output of the plan quality management process .Like all other process outputs, this is a how to document. Defines quality standards to be used in the project, defines how to control and manage quality, the tools used to ensure quality, how to continuously improve processes around quality.
Outputs of plan quality management process
Quality management plan and quality metrics
Quality metrics
Specifically describe a project or product attribute, and how the control quality process will verify compliance to it. Specifications on how quality will be measured during the control quality process such as error per line of code, or how fast a website should load, task completed on time, the failure rate, number of defects per day
Plan resource management
Describing how to estimate, acquire, manage, and use team and physical resources
Two types of resources
Team - people working on the project to build the deliverables. Physical – supplies, materials, services, facilities, and equipment.
Three tools used to document resources
Hierarchical Tash graphic, top down format. Matrix based chart – responsibility assignment, matrix (RAM), RACI charts. Text oriented format – detailed description of roles, qualifications, responsibilities, etc..
RACI chart
Acronym stands for responsible, accountable, consultant, inform. Column headers include people/roles, and each row is a task. The letters RACI are written in each cell to demonstrate each person’s role for a given task. Important to note only one person can be accountable for each task.
Team charter
Plan resource management output. A document that outlines what will be acceptable behavior within the project. Should include things like general rules of conduct for meetings, decision-making, and one on one conversations.
Estimate activity resources
Where you look at each individual activity and determine what and how many resources are needed to accomplish that activity. Resources are not just people, but also include equipment, machines, and different types of supplies needed to finish the activity.
Outputs of the estimate activity resources process
Resource requirements – detailed document containing the number and types of resources needed to complete each activity. Resource breakdown structure – hierarchical breakdown of resources by category/type. Basis of estimates – how the estimates were created.
Communication channels
A way to analyze the number of channels based on the total number of people on a project. Where a channel is the way two people communicate. That could be a report, a meeting, no contact, etc. Equation is n(n-1)/2, where in is the number of people on the project. 10 stakeholders equals 45 channels.
Communication methods
Informal refers to back-and-forth communication. Informal written (email, chat), formal written (contracts, documents), informal verbal (phone calls, meetings, face-to-face), formal verbal (presentations, speeches)
Communications management plan
Who should receive project communications what communications they should receive, who should send, how communication will be sent, how often, definition of terms
Plan risk management
The process of defining how to conduct risk management activities for a project. Planning how to identify, assess, respond, and monitor risk. Risk management is a proactive approach and should be done early in the project.
Identify risk
All personnel should be encouraged to identify risk and should be done throughout the project. Identify both positive and negative. Record and risk register and risk report.
Prompt list
Tool for identifying risk. A predetermined list of risk categories that can be referenced and used for discussion
Risk response
Does the response make sense financially, in other words, if the risk response will cost $1000 to implement, but the risk itself will only cost $100. If it happens, then the risk response doesn’t make sense.
Qualitative risk analysis
RANKING Risk. Prioritizing individual project risks by assessing their probability of occurrence and impact as well as other characteristics. Which risks are highest priority, then create a ranking. Performed throughout the project.
Tools to perform qualitative risk analysis
Risk probability and impact assessment - how likely is the risk to occur? Risk data quality assessment - the quality of the data when understanding the risk. Assessment of other risk parameters, like urgency, proximity, management ability, detectability
Risk categorization
The sources of risk grouped by root cause
Risk probability and impact matrix
A qualitative tool to analyze risk. Outlines probability and impact on the project – sorted by high risk, medium risk, low risk. Can display as table where columns are: the risk identified, probability, impact, score, ranking. The output is the ability to rank risksto see high, medium, and low.
Output of perform qualitative risk analysis process
Project documents updates. This includes risk register, and risk report. In the previous process, you identified the risks, but in this process, you are ranking the risks. This is continuous throughout the project.
Perform quantitative risk analysis
Qualitative ranks the risk. Now you are numerically analyzing impact of individual project risks on the overall project objectives. This assigns a value to the risks that have been ranked by qualitative analysis. Usually requires software and knowledge of risk models. May only apply quantitative for high likelihood risks identified in qualitative analysis
Tornado chart
Tool used to perform quantitative risk analysis Sensitivity analysis – tornado chart – a graph showing different functional areas of the project with the high and low variance represented as bar chart along a vertical line. Visually represents a tornado.
Decision tree analysis
Tool used to perform quantitative risk analysis. Also called make or buy analysis. Formula is risk cost times probability equals EMV, expected monetary value. Once EMV is calculated then add total of initial cost plus EMV give you the total (lesson 120)
Process flow of risk - General knowledge and understanding
- risk management (how things will get documented around risk), 2. Identify risks,3. Qualitative risk analysis (rank the risks)., 4. Quantitative risk analysis (assign value to risk). 5. Plan risk response (what are you going to do about it?)
Plan risk responses
Developing options, selecting strategies, and agreeing on ways to address risk on the project. Will allocate resources needed to respond to risk if they happen. Will address all risk.
Responding to negative risk
A.k.a. threats. Escalate (outside project team), avoid (eliminate the risk), transfer (to third-party), mitigate (reduce the impact), accept (do nothing, except the risk and deal with it if it happens)
Types of contracts
Fixed price (lump sum), cost reimbursable, time and material
When discussing contracts, for the purposes of the study guide, the project manager is the buyer and the seller is the entity performing services and accepting the contract
Fixed price contract
Also known as lump sum. Buyer pays one flat price for all work in the contract. Buyer takes on no risk and should be used when Scope is well defined and understood since contract is stating buyer will pay X dollars to complete every activity, no more no less. These contracts can include an incentive clause. (extra money to finish early) or economic price adjustment clause (long contract includes price adjustments to account for economic conditions, like inflation.)
Cost reimbursable contract
When the buyer pays for the work expenses and then pays the seller a fee for his profit. Buyer assumes most risk but seller assumes some risk. Cost-reimbursement types of contracts provide for payment of allowable incurred costs, to the extent prescribed in the contract. These contracts establish an estimate of total cost for the purpose of obligating funds and establishing a ceiling that the contractor may not exceed (except at its own risk) without the approval of the contracting officer. Used when scope is not well defined or likely to change, or during a long project
Time and material contract
Worst contract for buyer. Buyer pays for both labor and material. Buyer takes all the risk of cost overrun material. Should only be used when the scope is uncertain. Example – buyer pays a painter $30 an hour and buyer purchases all materials, if painter takes too long buyer pays all the cost for additional work.
Stakeholder engagement assessment matrix
Assigns a level of engagement to each stakeholder, are they unaware, resistant, neutral (aware, but don’t care), supportive, leading.
For each category listed above, you define the values “current” or “desired”
Note that the sample quiz also used a fake answer of stakeholder matrix.
Stakeholder engagement management plan
The output that identifies how you will keep stakeholders, engaged, such as product, demos, or meetings. The communication plan gets more into specifics about frequency, types of meetings, more detail about how communication is done. They both are very similar and overlap.
Risk versus issue
Risk may happen, issue is a problem that is happening or has happened. Issue log is an output of direct and manage project work (executing)
Explicit and tacit knowledge
Explicit – comes from a data source like a book or document. Tacit - comes from experience and critical, thinking, putting concepts and knowledge together.
Knowledge management
The sharing of knowledge between stakeholders on a project. Used to foster project interaction, such as networking, workshops, meetings.
Lesson learned register
Knowledged gained that documented throughout the project that can help productivity of current project and future projects
Tools to manage quality
Affinity diagram (grouping ideas), matrix diagrams, cause and effect (ishikawa or fishbone) - will tell you cause of defects, flowchart- graphical representation of process and any room for improvement, histograms (bar chats) - includes Pareto diagram, scatter diagram - shows trends, audits, design for X
Design for X
A tool to manage quality. Used by engineers to design a particular aspect of a product. For example, design for safety equipment will use higher quality products, design for a fidget spinner you can buy cheap products.
Pareto diagram
A tool to manage quality. This is a type of histogram and uses the principle of 80/20.
Output of manage quality process
Quality reports – includes info about quality issues on the project and recommendations on how to improve the process being used, test and evaluation documents – checklist used as guide to verify quality of deliverables
Tuckman’s ladder
Five stages of team development. Forming – people getting to know one another, storming – speaking about issues on the project, norming – coming to a solution, performing – doing the work, adjourning – team released
Maslow hierarchy of needs
Physiological (air, water, food, clothing, shelter), safety (can include stability in life, work, culture), social (love & belonging, friendship, family), esteem (people strive for respect, appreciation, approval), self actualization (seek personal growth and fulfillment)
Herzberg’s theory of motivation
Hygiene agents (factors that influence satisfaction at work) are expected by and can only demotivate if they are not present – vacation, health benefits, etc. Motivating agents provide opportunity to exceed and advance
OSCAR Model
Is a coaching and leadership style. Outcome (future state), situation (current state), choices/consequences, actions, review (regular meetings to offer support and motivation).
Drexler/Sibbet Team performance model
Seven steps, 1-4 describe stages of creating a project team, steps 5-7 cover project team sustainability and performance. 1 – orientation (why are we here), 2 – trust building (who), 3 - goal clarification (what), 4 - commitment (how, define plan), 5 -implementation (starts working), 6 - high performance (reach a high-level), 7 - renewal (working through a changes)
Greatest source of conflict in a project
Between project managers and functional managers due to disagreements over schedules, priorities, and resources.
Options for conflict resolution
Desired method: Problem-solving (aka confronting, win-win)– bring conflicting parties together to talk about and agree upon best solution.
Undesirable methods: forcing ( win – lose) compromising (lose – lose), smoothing – downplay the problem (lose – lose), withdraw – a party leaves so that another party gets what they want (yield – lose)
Steps to follow when addressing a problem
1 - define the cause of the problem (not just symptoms), analyze the problem (cause and effect diagram), identify solutions - let the team do this, implement selected solution, review solution, confirm the solution solved the problem
Student syndrome
Planned procrastination. When individuals or teams apply themselves to an assignment at the last possible moment before the deadline. Eliminates safety margins, add stress and pressure.
Parkinson’s Law
Work expands so as to fill the time available for its completion. For example, giving someone eight hours to do a job, they will take up the whole eight hours when really they could’ve finished in two if you gave them two hours.
If you give someone 30 minutes to make a shake, then they will take all 30 minutes
Sandbagging
Under promising and over delivery. People set expectations at a certain level, knowing they can perform tasks with ease.
Dropped baton
When work is handed off from one group to another where one team finishes early, but the other team isn’t ready to accept/start the work. Leads to wasted time.
MBTI
Myers Briggs Type Indicator. Personality assessment that categorizes people into 16 groups.
Implement risk response
Process of executing risk response to minimize project threats, and maximize project opportunities. Negative risk (threats) are recorded in an issue log (whenever they are realized) and then the risk register is consulted to determine risk response.
Conduct procurement
A process in the executing process group. The planning component involved sending out contracts to sellers. This process involves obtaining responses and selecting a seller by awarding contracts. Select qualified seller and implement legal agreement.
Monitor and control project work
Integration process (top level) of this process group. Tracking, reviewing, recording progress to meet performance in PM plan. Identifies where changes to plan are needed and initiates changes. Puts all work performance information in the work performance report.
Work performance data versus information
Work performance data is the raw data, work performance information is comparing the data against the plan. The output of the information should be included in the work performance report.
Perform integrated change control
A.k.a. PICC. Review all change requests approving changes and managing changes to deliverables, project, documents, and p.m. plan. Communicating the decisions. Assess impacts to project. Any stakeholder may submit change request (including PM), should be submitted in written form to change control board
Validate scope
Formalized acceptance of the completed project deliverables. Deliverables from control quality process are reviewed with customer or sponsor to ensure they are correct and accepted. Closing project occurs after completion of this process.
Control scope
Keeping the project on scope. Process of monitoring the status of the project and product scope and managing changes to the scope baseline. Uncontrolled expansion to product or project scope without adjustment to time, cost, or resources is defined as scope creep. Must update project baselines to reflect scope changes.
Control schedule
Process of keeping the project on schedule. Monitoring status of the project to update project schedule and managing changes to schedule baseline. Baseline maintained throughout the project. Compare work results to plan to verify alignment.
Control costs process
Process of keeping the project on budget. Monitoring status of project to update project costs and manage changes to the cost baseline. primarily concerned with cost variance. Any increase to authorized budget must be approved through the performance integrated change control (PICC) process.
Tools used in the control cost process
Earn value analysis, variance analysis, trend analysis, reserve analysis,To-Complete performance index (TCPI)
What is earned value management?
EVM, series of formulas to calculate the cost and schedule progression on the project. Will be done during monitoring and controlling. Compares work completed to the plan – plan versus actual work.
Can also be referred to as earned value analysis. Assesses project performance and progress. Provides means to determine cost and schedule.
Budget at completion (BAC)
EVM formula, this is the original budget of the project. No formula. Part of the EVM formulas.
Planned value (PV)
EVM formula, The amount of money worth of work that SHOULD have been done on the project. Formula: PV = planned percent complete x BAC.
Example – 50% of project complete times the original budget (BAC) =PV
Earned value (EV)
EVM formula, the amount of money worth of work you ACTUALLY did on the project. Answers the question how much money have you actually spent on a project?
Formula: EV = actual % complete times BAC, where BAC is the original budget of the project
Actual cost (AC)
EVM formula, amount of money you already spent on the project. The value of work actually completed.
Key difference between AC and EV is EV is the worth of the work that has been completed based on the projects budget. AC is the total cost incurred for the work performed on a project up to a certain point in time
Cost variance (CV)
EVM formula. The difference between the work done and money spent. Positive indicates under budget, negative indicates over budget. Formula CV = EV – AC.
Cost performance index (CPI)
EVM formula. The rate of how we are spending to actually earning on the project this value should be one and over for projects under budget. Formula: CPI = EV/AC.
Schedule variance (SV)
The difference between the amount of work we should have done versus the amount actually done. This value should be positive for ahead of schedule. Negative values indicate behind schedule. Formula: SV = EV – PV.
Schedule performance index (SPI)
The rate of how we are meeting the project schedule. This value should be one and over for a project to be ahead of schedule. Formula: SPI = EV/PV.
Estimate at completion (EAC)
FORECASTING The total cost of the project at the end based on the current spending rate of the project. Formula: EAC = BAC/CPI.
Estimate to completion (ETC)
FORECASTING the amount that will be needed to complete the current project based on the current performance. Formula: ETC = EAC - AC.
Variance at completion (VAC)
The difference between the original budget and new forecasted budget. This value should be positive for projects that may end at budget or under budget. Formula: VAC = BAC– EAC
Two – complete performance index (TCPI)
EVM formula, the performance that needs to be met to finish the project within budget. Formula: TCPI = (BAC – EV) / (BAC – AC).
Basically it’s how hard team needs to work to complete project. If output equals 0.8, then team can work at 80% and still meet budget. If 1.2 then team must work 20% harder to stay on budget.
Control chart
A tool used to control quality. It will tell you if a process is in control or if the process will output a defect later. This is a manufacturing term. It includes acceptable, upper and lower limits; however, if there are seven consecutive points plotted closer to the upper limit or lower limit, then there is a likelihood of a defect. This is known as the rule of seven.
Control resources
How physical resources are managed and used effectively. NOT ABOUT CONTROLLING PEOPLE, but rather physical resources.
Monitoring
Under the monitoring and controlling process group, anytime you have a process around monitoring, this process is looking at the plan output created in the planning process group and comparing it to the execution. In other words, is the execution of a process lining up with the plan, that’s monitoring.
Claims administration
Claims will arise as part of the control procurement process where you are managing vendor relationships to ensure they are staying on contract. Claims administration is how disputed charges can be settled when the buyer and seller cannot reach an understanding. Disputed charges typically arise when the seller does more work than specified in the contract and wants more money. For example, project calls for painters to paint a room and they had to patch holes in order to complete job so they did that and now want more money for the patchwork. Negotiation is key to this term.
Close procurement
Important last step of the control procurement process. Buyer and seller should both sign off that work was completed to avoid legal disputes.
Change control board (CCB)
A group that helps the project manager to assess and deny or approve changes. The project team can help assess the change, but cannot approve it.
Project plans and process where made
Activity attributes
Can be used to identify specifics about the activity, like where the work will be performed. I.e. a particular warehouse that will fabricate steel beams.
Earned value formulas and definitions
S curve
Used when creating the cost baseline. An S curve is a time phase view of the cost baseline which typically shows the budget versus the actual amount spent on the project.
Earned value management is beneficial for the following situations
- Measure a project’s progress against the project scope, cost, and schedule baseline.
- Forecast future performance and the project completion date and final cost.
- Provide schedule and budget variances during the project.
Total quality management (TQM)
Everyone in the company is responsible for quality and the underlying process of how a product is made. This is a quality management theory that states all company employees must pay careful attention to the work that they are doing to ensure the company delivers a quality product.
Requirements traceability matrix
Shows the origin of the requirements. Where they came from.
Flowchart
Sometimes called a process diagram. Displays the sequence of steps that a given process will follow
Ishikawa diagram
Also known as, a cause and effect diagram. Shows the reasons for potential cause.
Matrix diagrams
Helps to show relationships in a process
Histograms
Bar charts that show things like frequencies
Scatter diagram
Show the relationship between two variables
Who should perform quality audits if there are concerns about poor quality?
Quality audits are best done by a team external to the project. This ensures there are no conflicts of interest during the audit and the results are objective. An example would be an organizations internal audit department.
Colocation
Place where a team meets at a single location to enhance their performance as a team.
Theory X
Theory that involves managers who distrust their workers and believes that people do not like to work and need to be managed constantly. Mostly known as micromanages and can decrease morale.
Expert power
When the project manager is an expert in the field in which the project is taking place.
Individual and team assessments
Used in the process of developing the team. It is done to gain insights into strengths and weaknesses for the team and its members.
Pull and Push communication
Pull communication is when The person acquires information upon request using things like a web portal. Push communication is when the project manager sends out updates and communications without receivers asking.
Risk breakdown structure
Shows different categories of risk on the project. Part of the risk management plan.
What is the next step after creating the risk register?
The risk report. You would think it would be the risk response plan, but I know, there has to be a report about the risk register and I’m also not certain if the risk response plan is done after the report or before developing risk register during the risk management plan process?
Bubble chart
Used to display three dimensions of data
Preapproved seller list
A list of vendors that have been properly vetted by the organization that can be used as potential contract sellers on the project
Fixed price economic price adjustment
A contract used to adjust the fixed cost over the life of the contract due to economic conditions, such as inflation
Plan procurement management
The process to determine what the project team should procure, if anything, and how it should be done. For example, should software be developed internally or purchased from external vendor?
Source selection criteria
Used to evaluate contract sellers and can include things such as costs, delivery dates, experience, financial stability, management experience
What type of contract should be used when scope is not well defined?
Time and material. While this shifts all the risk to the buyer, without a well defined scope, you cannot use fixed-price or cost reimbursable contracts, such as cost plus fixed fee contracts
Cost plus fixed fee contract
reimburses the contractor for allowable costs and pays a fixed fee, regardless of project performance or cost
Independent cost estimator
Hiring an outside professional estimator to provide a benchmark to determine whether the bids from a seller are adequate for the project
Procurement management plan
Part of the project management plan and documents how to manage the procurement process. Contains the activities necessary to conduct the procurement process.
Procurement statement of work
Documents what components of the project will be procured. Outlines what components of the project will be procured from an outside source. It contains information such as specifications, desired quality, and quality levels.
Procurement strategy
Think delivery and types of agreements (i.e. cost plus fixed fee agreement type)
Documents delivery methods (how the procurement on a project should be delivered), types of agreements, and procurement phases of a project. A project document that outlines how the procured section of the project should be delivered.
Scenario: company purchasing telephone system will implement a cost plus fixed fee contract, this would be added to the procurement strategy project document
Procurement statement of work and bid documents
More research needed on these document types
Seller proposals
Should be acquired before the buyer negotiates and selects the seller. Collecting seller proposals is part of the procurement planning process, while executing the procurement process is selecting a contract.
Vendor conferences
Also known as bidder conferences, are meetings between the buyer and prospective sellers prior to the sellers submitting a proposal (contract). Scenario: a large contract, meeting with all sellers would take too much time, hold a vendor conference.
Agreement (procurement process)
Contains elements such as pricing and payment terms, inspections, warranties, incentives, and penalties, and insurance and performance bonds. Scenario: PM has selected a seller to work on a contract that requires insurance and performance bonds of a certain amount. This information would go in an agreement.
Control procurement
When the seller starts to work and the buyer inspects the work, this is part of the control procurement process. Unclear what monitor procurement involves, need to investigate to see if it’s a real process and if so, create a flash card.
Claim
A contested charge that occurs when a seller does additional work that is not in the contract. The best way to resolve a claim is to negotiate a settlement.
Cost reimbursable contract – two sub types
Cost plus fixed fee and cost plus incentive fee
When the seller completes all work, who closes the procurement process?
The project manager should approve all deliverables before the closure of the procurement process. It should be closed with a formal written notice to the seller stating all work has been completed. Again, the project manager and not the sponsor is responsible for approving deliverables and closing procurement.
Request for proposal
a formal document used to solicit proposals from potential vendors or contractors for a specific project or service, ensuring a structured and transparent process for selecting the best fit
What is the output of the stakeholder management process?
A stakeholder engagement plan
Steps for traditional risk management approach
Plan risk management, identify risks, qualitative risk analysis, quantitative risk analysis, plan risk responses, implement risk responses, monitor and control risks
